What happens if I fail to file my tax returns?

If you fail to file your tax returns, there may be consequences imposed by the Inland Revenue Department (IRD). Firstly, you may incur penalties and interest on the outstanding taxes, increasing the amount owed. The penalties vary depending on the jurisdiction and the duration of the delay. Additionally, repeated failure to file taxes can lead to further legal actions, such as audits, tax liens, or even criminal charges in extreme cases. The IRD has the authority to collect unpaid taxes through various means like seizing assets or garnishing wages. Moreover, non-compliance with tax filing requirements can negatively impact your credit rating, affecting future loan applications or financial transactions. It is important to fulfill your tax obligations promptly to avoid these consequences.